Toys R Us has yet to be resold – the latest attempt to revive the well-known but struggling brand amid a boom in toy sales.
The once-powerful retailer filed for bankruptcy protection in 2017 amid mounting debt is now owned by WHP Global, a brand licensing firm that owns Ann Klein and Joseph Abode.
WHP Global acquired a majority stake in True Kids, which owns Toys R Us and Babies R Us, the company said on Monday. Financial terms of the deal were not disclosed.
WHP Chief Executive Officer Yehuda Shimdaman said in a statement, “We are thrilled to take over the reins of the world’s leading toy brand at a time when the category has grown by 16 percent and consumer demand for toys is at a high level. ” “This is a natural fit for WHP, as we can leverage our global network and digital platform to help Toys R Us and Babies R Us grow worldwide.”
Schmidman told CNBC that he plans to develop a 70-year-old retailer founded by Charles Lazarus and made famous by re-opening a physical store by its mascot, Geoffrey the Giraffe.
But the odds for doing so are greater than ever because the gaps left by ToyRR – once the nation’s largest toy seller – have since been followed by big box retailers such as Walmart and Target, as well as e-commerce giants Amazon Have been filled
“Toys R Us is one of the greatest brands in the world,” said Gerald Storch, who was once the company’s chief executive. “But the challenge is that market share is already split between Amazon, Walmart and Target.”
Shmidman, who earlier tried to buy the brand out of bankruptcy, has been the Vice Chairman of Tru Kids since 2019, according to sources. His company has a $ 350 million equity commitment from funds backed by Axtree Capital Management and backed by BlackRock.
The Toys R Us and Babies R Us brands were bought by private equity investors Solus Alternative Asset Management and Ares Management, which were expected to revive the chain by opening small stores across the country before the plan to sidestep the epidemic. .
Two stores in New Jersey and Texas that opened in 2020 were quietly closed in 2021.
The majority of Tru Kids revenue comes from licensing fees abroad, where Toys R Us and Babies R Us generate over $ 2 billion in sales from some 900 stores and e-commerce sites across Canada, Asia, Africa and the Middle East Are, according to WHP.
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